Getting a mortgage in Canada as a UK buyer

The contents of this article are for informational purposes only and do not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.

Buying a home in Canada? Unless you’re buying outright, you may need to secure some financing. In this practical guide for UK buyers, we’ll walk you through how to get a mortgage in Canada.

This includes the steps involved in the application process, the eligibility requirements, and what documents you’ll need. Plus, the fees and costs involved, and the current mortgage rates in Canada.

And if you’re looking for ways to save money on currency exchange when sending a deposit (sometimes called a ‘down payment’ in other countries) or mortgage fees to Canada, you might want to check out the money services provider Wise.

You can send large transfers with Wise for low fees* and mid-market exchange rates - making it ideal if you’re sending a secure international transfer.

Can you get a mortgage in Canada as a non-resident?

Yes, many Canadian banks and lenders do offer mortgages to foreign citizens and non-residents.

However, you’ll need to meet strict eligibility and affordability requirements, and generally be considered a strong lending candidate. This can be more difficult for non-residents, as banks and lenders will be unable to access a credit history in Canada.

Also, non-residents may only be able to borrow around 65% of the property value.¹ This means you’ll need a larger deposit ready.

You might find it useful to work with a specialist broker, who can help you find the right mortgage for you. Bear in mind, though, that this usually comes with a fee.

While it may not be directly related to mortgages, you should also be aware of the ban on foreign ownership of Canadian residential housing - which is set to run until 2027.²

Non-residents can still buy homes in smaller towns and rural areas, but not in large population centres known as Census Metropolitan Areas (CMAs). This may come up as you start your search for both mortgages and property to buy in Canada.

Getting a mortgage in Canada from the UK after Brexit

The UK leaving the European Union (EU) has had no effect on the process or eligibility requirements related to getting a Canadian mortgage as a British citizen.

This means you should be treated like any other foreign national when applying for a home loan.

Mortgage eligibility criteria for UK citizens in Canada

The most important eligibility requirement for getting a mortgage in Canada is passing the ‘stress test’. This is to prove you can afford payments at a qualifying interest rate - this is whichever is the highest of 5.25% or the rate your lender offers you plus an extra 2%.³

You’ll also need to meet the following requirements (among others, depending on the lender):³

• Have a good credit score
• Prove that you can afford your repayments, using income, expenses and debt information
• Have total monthly housing costs of less than 39% of your gross household income
• Have a total debt load of less than 44% of your gross income
• Have a deposit of at least 35%.¹

Is it easy to get a mortgage in Canada?

If you meet the criteria and have all your documentation in order, getting a mortgage in Canada can be relatively straightforward - especially if you’re a resident.

However, you’ll need to pass that all-important ‘stress test’ as well as meeting many other conditions. The process can be complex and rigorous, so it can feel daunting.

For non-residents, the process can be even more complicated, with more requirements for documentation or extra information. This can slow down the process.

Step by step guide on how to apply for a Canada mortgage as a foreigner

To give you an idea of what to expect, here’s a step-by-step look at the process of applying for a Canadian mortgage as a foreign national:

1: Work out how much you can afford to borrow

You can contact the lender directly or use a broker for this, but there are also handy affordability calculators you can use - like this one from CIBC bank.

2: Check your eligibility

The next step is to check that you meet all of the eligibility requirements, including that crucial ‘stress test’. At this stage, it’s a good idea to start getting your documentation in order.

3: Apply for mortgage pre-approval

Getting an Approval-in-Principle (AIP) document from a lender will be extremely helpful when making offers on properties, as it demonstrates that you have financing in place and can afford the purchase price.

You’ll need to shop around for suitable mortgages, and then you can apply for pre-approval from your chosen lender. You’ll usually need details and documents relating to income, employment and financial history ready.

4: Find a property to buy

Find a property within your budget and agree on a purchase price with the seller. Inform your mortgage provider, ready to take the next steps.

5: Apply for your mortgage

At this stage, you’ll officially apply for your mortgage. You’ll need to provide all the required details and documentation (we’ll cover what you’ll need in just a moment) and submit a full application.

The lender will usually carry out a valuation appraisal on the property, which is essential for securing the mortgage. An appraisal fee may apply.

6: Wait for approval

If your application is successful, you’ll be issued with a binding mortgage offer - known as either a Letter of Commitment or Mortgage Approval Letter. This sets out all of the details, terms and conditions of the mortgage.

You’ll usually have a short period to read through everything, accept the offer and sign the official mortgage deed/contract.

Your solicitor will carry out all the other legal work to complete the property purchase, including arranging with the lender to draw the mortgage loan and pay the outstanding purchase price to the seller.

Which documents do you need as a non-resident?

The exact documents you’ll need to apply for a mortgage in Canada will vary between lenders.

But here’s an idea of what you’re likely to need as a non-resident:

• Proof of ID
• Proof of address
• Proof of income - if your income is from outside of Canada, you’ll need to verify it through payslips, bank statements and/or tax returns⁴
• Proof of employment - such as an employment letter or contract which specifies salary
• A letter from your bank in the UK to confirm good standing and account history (not always required)⁴
• A Canadian bank account with enough reserves to cover several months of mortgage payments (not always required)⁴
• Property transaction documents - such as the purchase agreement, proof of deposit and eventually, the final sales contract and title deed.

You may also be asked for other documents relating to your credit history or other assets, debts and mortgages.

The stronger your financial documentation, the better the chances of acceptance. So it pays to be prepared, with as much proof of income and a good credit history as possible.

How long does it take to get a mortgage in Canada?

The timeline for getting a mortgage in Canada varies between lenders, but it’s typically relatively quick. In general, it takes around a month from pre-approval to completion.⁵

Fees and costs for getting a mortgage in Canada

Applying for a mortgage in Canada usually involves some fees. But for most applicants, there’s usually only a valuation fee to pay.

Valuation fees

In most cases, a valuation of the property will need to be carried out, and the buyer is responsible for the fee. It’s usually around $350 to $450 CAD.⁶

It’s important to note that this valuation survey only looks at the value of the property, and won’t identify any structural, maintenance or other issues. You’ll need to commission your own building survey for that.

Mortgage arrangement fees

In some countries, an arrangement or origination fee is charged when issuing a mortgage. In Canada, banks and other major lenders don’t usually charge this.

However, you may have a fee to pay if you borrow from alternative or private lenders - these can vary between providers.

Other fees and costs

You may also encounter some of these other costs when applying for a mortgage in Canada:

• Broker fees (if you’re using a broker) - these costs vary by provider, so you’ll need to get quotes
• Mortgage insurance - often required if you have a high LTV rate
• Transfer fees - if you need to make payments between countries to pay the deposit or the fees above, you may incur fees.

Read more: How to transfer large sums of money between bank accounts?

Canadian banks or lenders offering mortgages to foreigners

Most major banks in Canada offer mortgages to both local citizens and foreign applicants. This includes:

• RBC
• TD Bank
• Scotiabank
• CIBC

Whichever lender you use, check that they’re on The Canadian Mortgage and Housing Corporation list of approved lenders.

Mortgage rates in Canada

As of 15th February 2026, the lowest rates for different mortgage types in Canada were:⁷

• 3.69% for a 5 year fixed rate mortgage
• 3.59% for a 3 year fixed rate mortgage (Ontario only)
• 3.35% for a variable rate mortgage.

Can you get a UK mortgage to buy property in Canada?

You might find it difficult (although not impossible) to get a mortgage in the UK to finance your property purchase over in Canada.

Not many UK banks and lenders offer what are often known as ‘overseas mortgages’, so you’ll need to do some shopping around. Your best bet may be specialised international, expat or Canada-based lenders.

You could also look at remortgaging an existing property you own in the UK, borrowing more to raise funds for your purchase in Canada.

Crucially, you should only do this if you can afford the repayments. It could also be a good idea to seek professional financial advice first.

Read more: The best UK banks for sending money abroad

Do banks offer Buy-to-Let (BTL) mortgages in Canada?

Yes, it’s possible to get a Buy-to-Let (BTL) mortgage in Canada, although they’re usually known as rental property or investment property mortgages.

You may find that interest rates are higher with this kind of mortgage, and you may also find it more difficult as a non-resident (considering the current ban on foreign ownership of rental property in high population areas).

Refinancing a mortgage in Canada

It’s also possible to remortgage a property in Canada, which is useful if you want to switch providers to get better interest rates or restructure loan terms.

Refinancing can also help you borrow more money, such as to fund another property purchase without having to sell your first property.

You’ll just need to make sure you can afford the repayments and aren’t overstretching yourself.

Types of mortgages in Canada

Here are the main mortgage types you can choose from in Canada:

Fixed-Rate Mortgage

With fixed rate mortgages, the interest rate remains the same for the entire term (for example, 3 or 5 years). This offers predictable, consistent payments.

Variable-Rate Mortgage

With this mortgage type, the interest rate fluctuates based on the lender's prime rate, which is influenced by the Bank of Canada. Payments may go up and down in line with fluctuations in the prime rate.

Closed Mortgage

Closed mortgages are usually restricted to a specific term, so you can’t repay early without penalties. However, you may get lower interest rates compared to some other mortgage types.

Open Mortgage

Open mortgages let you make large payments or even full repayment, offering maximum flexibility. However, they generally have higher interest rates.

Final tips for getting a mortgage in Canada as a non-resident

To stand the best chance of getting accepted for a Canada mortgage as a non-resident, bear these tips in mind:

• Try to build up a credit file or some form of financial footprint in Canada, such as opening a local bank account. Having some form of international account which accepts Canadian dollars (CAD) can also streamline the payment process later on.
• Ensure you have a large enough deposit
• Get an international credit report, if possible - or a reference letter from your UK bank
• Get tailored advice about suitable mortgage products for non-residents and foreign applicants - this may mean using a specialist broker
• Make sure you have all your documentation in order, especially relating to income, employment and savings.

Manage overseas property costs with Wise

If you’re sending your deposit and mortgage fees to Canada from the UK, you may incur hefty transfer and exchange fees when converting your British pounds to Canadian dollars (CAD). This is where Wise and the Wise account can help you save money.

Open a Wise account online and you can start managing your money in 40+ currencies. It’s not a bank account and offers customers an alternative option to a conventional bank account, but has similar features.

Here’s an overview of the main benefits for using Wise:
Fast and easy setup with no physical paperwork Low, transparent fees* Mid-market exchange rate for currency conversions Fully trackable transfers Fast transfer times Advanced security features with two-factor authentication and real-time notifications Dedicated support for large transfers

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FAQs

How much money do you need for a mortgage in Canada?

Residents of Canada usually only need a down payment of 5% to get a mortgage,⁸ but the minimum required deposit can be as high as 35% for non-residents.¹ If you don’t have a very large deposit, you may need to buy mortgage insurance.

Can I get a mortgage in Canada if I am a British citizen?

Yes, British citizens can get a mortgage in Canada, as long as they meet the eligibility requirements - especially in relation to income.

What proof of income do I need for a mortgage in Canada?

You’ll usually need to provide bank statements, pay slips and/or tax returns to prove your income when applying for a Canadian mortgage. The more documentation you have, the better.

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Sources used:

1. Online Mortgage Advisor - Mortgages in Canada
2. Government of Canada - Government announces two-year extension to ban on foreign ownership of Canadian housing
3. Government of Canada - Preparing to get a mortgage
4. Experts for Expats - Canadian mortgages for expats and non-residents
5. Tukin Mortgage - How Long Does a Mortgage Approval Take?
6. Mortgage Brokers Ottawa - Closing Costs and Up Front Costs
7. ratehub.ca - Mortgages
8. Government of Canada - How much you need for a down payment

Sources last checked on date: 16-Feb-2026